The U.S. Government Awards Up to $6.4 Billion to Samsung Electronics  for Chip Manufacturing Facility in Texas. In a significant move to bolster the semiconductor  industry in the United States, the government has reportedly allocated up to $6.4 billion to Samsung Electronics for the construction of a state-of-the-art chip manufacturing facility in Texas. This substantial investment is part of a series of major subsidies provided by the U.S. government to rejuvenate the domestic semiconductor manufacturing sector.

Upon receiving this funding, Samsung Electronics is set to more than double its investment in Taylor, a city near Austin, Texas, bringing the total to approximately $45 billion. This increased investment will be utilized to establish a second chip fabrication plant, advanced chip packaging facilities, and enhance research and development capabilities.

As previously reported, Samsung had committed over two years ago to invest $17 billion in Taylor for the construction of a cutting-edge semiconductor manufacturing plant. Groundbreaking for this facility began in 2022, with plans to commence mass production sometime this year. However, due to factors such as inflation, the construction costs for Samsung's first U.S. chip plant have increased, necessitating additional investment of several billion dollars.

The newly planned second chip factory is expected to cost over $20 billion, while the proposed advanced packaging facilities will require an estimated $4 billion.

It is important to note that the final disbursement of these funds to Samsung is contingent upon the due diligence of the U.S. Department of Commerce. The Department is responsible for overseeing $39 billion in manufacturing subsidies under the 2022 Chips Act.

With the inclusion of the funding for Samsung Electronics, the U.S. Department of Commerce has committed a total of $23 billion this year for major chip manufacturing projects within the country. According to the Department, the Samsung project is projected to create 17,000 construction jobs and 4,500 manufacturing jobs, further emphasizing the positive economic impact of this investment.